Louis profits surge by 55.7%

Louis Pcl (LUI) released its preliminary 2006 results posting a 16% YoY increase in revenue to CYP 182.1 mln or EUR 316.2 mln, while profits also surged higher with the company issuing a bullish forecast on 2007 profits following the sale of a stake in the CTDC earlier in the month.

Revenue from the Company’s cruise operations increased by 21.2% YoY to CYP 115.5 mln or EUR 200.5 mln, while LUI’s hotel operations rose by 7.6% YoY to CYP 66.5 mln or EUR 115.5 mln.

Despite the hike in oil prices, EBITDAR was recorded at CYP 44.1 mln in 2006 (EUR 76.5 mln), up by 19% YoY, with margin improving by 50bps to 24.2%. The increase in EBITDAR level was primarily associated with the improvement in the cruise operations as well as the Group’s hotel operations in Greece.

Group net profit in 2006 had a positive impact by an FX related gain amounting to CYP 3.5 mln (EUR 6.1m) vs. an FX related loss in 2005 amounting to CYP 2.1 mln (EUR 3.7 mln) because of the weakening of the USD. Additionally, a surplus of CYP 2.1 mln (EUR 3.6 mln) relating to the negative goodwill of fixed assets acquired helped the bottom line. Finally, in 2005 a tax credit amount of CYP 4.8 mln (EUR 8.4 mln) helped the bottom line figure following changes in Greek tax law against a tax charge in 2006 of CYP 140.000 (EUR 243.000).

Net profit after minority interest improved significantly by 56% YoY to CYP 12.5 mln or EUR 21.74 mln compared to CYP 8.03 mln or EUR 13.95 mln recorded in 2005, thus yielding an EPS of CYP 0.0296 or EUR 0.0514.

The company also confirmed that it will book an extra-ordinary profit of EUR 15.6 mln arising from the sale of 57% in CTDC.